The Nigerian government is in discussions with the World Bank for a $500 million loan to support its recently approved Health Sector Renewal Investment Initiative (HSRII). This initiative is a major part of the government’s efforts to tackle critical health challenges in the country.
According to a World Bank appraisal document, the loan will be provided under the ‘Nigeria: Primary Healthcare Provision Strengthening Program.’ The document highlights that the HSRII, launched in December 2023, is a transformative initiative aimed at drastically reducing maternal and under-five mortality rates in Nigeria. The program seeks to improve health outcomes and unlock the nation’s economic potential through targeted investments in primary healthcare.
The loan is expected to be approved on September 26, 2024. As per the World Bank’s Program Information Document (PID) updated on August 16, 2024, this loan is a crucial element of the broader HSRII, which aims to enhance the quality of essential health services and strengthen the resilience of Nigeria’s healthcare system.
HSRII is designed to fortify community-based service delivery and improve the capacity of primary healthcare facilities across the country. The program is a critical step toward achieving universal health coverage in Nigeria, addressing long-standing issues such as inadequate health financing and poor health outcomes.
The $500 million loan from the World Bank will form the bulk of the $570 million total financing package for the program, with the remaining $70 million expected from trust funds. The involvement of the World Bank is also anticipated to attract additional support from other development partners.
The Federal Ministry of Health will oversee the implementation of the HSRII. President Bola Tinubu, through the Federal Ministry of Health and Social Welfare, unveiled the initiative in December 2023, emphasizing the administration’s commitment to prioritizing the health sector. This commitment includes massive investments and increased budget allocations for health in 2024.
President Tinubu also appointed Dr. Muntaqa Umar Sadiq as the National Coordinator of the Sector-wide Coordinating Office-Programme Management Unit (SCO-PMU) for the HSRII. The Federal Government has already mobilized $2.2 billion in external finance for the initiative.
This loan request comes amid rising concerns over Nigeria’s external debt. Nairametrics reported that under President Tinubu, Nigeria’s debt to the World Bank increased by $1.07 billion, with the country securing a total of $4.95 billion in loans from the World Bank. The World Bank may approve four loan projects totaling $2 billion for Nigeria this year, with Nigeria owing the institution $15.59 billion as of March 31, 2024.
